The POP(Point of Purchase) vs. POS(Point of Sale) Debate
The success of modern retailers depends upon their understanding of how consumer psychology works. Today, they are required to know how customers shop and why they might choose one product over another. Only then can they truly flourish in the market. Moreover, businesses today utilize this knowledge to execute effective in store marketing strategies. These are undertaken to influence buying decisions, boost conversions, and deliver a smooth shopping experience. That’s where the two most important concepts of modern retail operations come in: POP(Point of Purchase) vs. POS(Point of Sale).
Often used interchangeably (and incorrectly), they represent two uniquely different stages in a customer’s journey. Additionally, both of them are designed to perform a distinct role to persuade customers, improve visibility, and encourage impulse buys. Understanding the nuance of the POP(Point of Purchase) vs. POS(Point of Sale) debate helps retailers make informed decisions.
POP(Point of Purchase) vs. POS(Point of Sale): What Is POP in Retail?
Before we talk about the POP(Point of Purchase) vs. POS(Point of Sale) , let’s first get familiar with them. The former refers to any location inside a store where customers make decisions about a product. This is where a customer decides whether or not they want to buy a product.
The places include shelves, display stands, promotional booths, aisle ends, branded signboards, and even demo counters. Furthermore, unlike their counterpart, they are not limited to checkout areas only. Instead, they are everywhere a customer pauses to consider a purchase. Their key objectives are as follows.
- Drawing attention to a product
- Encouraging impulse purchases
- Highlighting new arrivals or seasonal items
- Delivering product benefits quickly
- Guiding customers through a store’s layout
They enable brands and stores to speak to customers at the precise moment where they are evaluating their options. Moreover, businesses consider it an essential tool to increase product visibility. That too without requiring any verbal sales assistance.
POP(Point of Purchase) vs. POS(Point of Sale): What Is POS in Retail?
Now, let’s consider the other half of the POP(Point of Purchase) vs. POS(Point of Sale) discussion. The latter refers to the physical or digital location where a transaction is completed. Furthermore, it is here that customers finalize payments and receive receipts. Arguably, its most unique aspect is that it can take various forms.
- A cashier counter
- Self checkout kiosk
- A mobile POS terminal
- An online checkout page
- A tablet based payment device
Moreover, they have replaced traditional cash registers forever. Now, these modern tools integrate with inventory, customer loyalty programs, accounting tools, analytics platforms, and digital payment systems. Additionally, their primary purpose is to make purchases quick, accurate, and convenient.
POP(Point of Purchase) vs. POS(Point of Sale): What’s the Real Difference?
Now that we know what both of them are, let’s look at the details. Often people incorrectly use them interchangeably. However, though sounding similar, they perform vastly different roles in a retail environment.
- Purpose in the Customer Journey: The former focuses exclusively on product assessment, helping customers evaluate what to buy. Meanwhile, the latter concerns itself with transaction completion. It is designed to help customers pay for what they have chosen.
- Physical Location: Another distinct difference between them is their location in the store. POP can be anywhere, from the entrance displays to mid aisle shelving signage. However, POS is often found at or directly related to the checkout area or payment interface.
- Marketing vs. Transaction: The former is solely a marketing tool. Its design is geared towards influencing customer decisions through visuals and promotions. On the other hand, its counterpart is a sales tool. Its composition enables customers to complete purchases efficiently with the help of software or hardware.
- Customer Interaction: One of the main differences between the two systems is how consumers interact with either of them. POP is installed to encourage browsing, reading, comparing, and deciding. Alternatively, POS involves scanning, payment, and exit. In other words, consumers interact with it at the final step of their shopping journey.
Retailers need to realize why POP(Point of Purchase) vs. POS(Point of Sale) debate is important to them. Knowing about their differences helps businesses design better layouts, promotions, and customer experiences that work together seamlessly.
Conclusion
At the end of the day, the POP(Point of Purchase) vs. POS(Point of Sale) debate is not just a discussion. Rather, it is an incredibly important learning foundation for modern enterprises. It is only after learning about them and their details are they in a position to make informed decisions.
That’s why these discussions have evolved to being discussed between stakeholders to being taught in classrooms around the world. Every young professional’s required to understand the nuance of the POP(Point of Purchase) vs. POS(Point of Sale) discussion.
FAQs
Q: What is Point of Purchase (POP)?
A: It refers to the locations inside a store where customers interact with or evaluate products. Moreover, its displays help shoppers notice promotions, product features, and new arrivals. Hence, encouraging consumers to take action.
Q: What is Point of Sale (POS)?
A: This is where the customers complete a transaction. Additionally, these systems manage payments, receipts, discounts, and digital monitoring of sales activity.
Q: Why is POS advertising important?
A: There are various arguments that describe its importance in detail. However, the most common ones relate to targeting customers at the final stage of their buying journey. Furthermore, they are strategically placed to maximize their influence on customers. Thus, increasing the possibility of last minute purchases, increasing average order value, and reinforcing brand messaging.
Q: What are some examples of good POS marketing?
A: Though the definition of ‘good’ varies a lot, a reliable marketing campaign includes digital checkout screens recommending add on items. Additionally, they include discount signs at the cashier counter, loyalty program reminders, and promotional shelf cards placed near checkout aisles
Q: Can a business use both POP & POS together?
A: Not only is it possible, but it is recommended as well. It helps create a complete customer journey. The former compels customers to discover items. Meanwhile, the latter ensures a smooth and efficient payment process. Hence, they come together to maximize sales and optimize customer satisfaction.
Q: What are the benefits of a good POS system?
A: There are multiple advantages of incorporating such a system. They include improved checkout speed, and reduced human errors. Additionally, it supports multiple payment methods, syncs with inventory, provides real time sales reporting, and integrates loyalty programs. All these factors help retailers to create an efficient workflow.
